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Cohort Analysis: The Report Every DTC Needs Monthly

Kavya Mehra 3 min readJuly 19, 2024

The monthly cohort matrix

Rows are customer acquisition month. Columns are month 0, 1, 2, 3+ revenue. Shows whether new customers are improving or degrading.

What good looks like

Later cohorts should outperform earlier ones at the same age. If they don't, your acquisition channels are becoming less efficient.

What to do if it worsens

New cohorts underperforming usually means paid channels are pulling in lower-quality customers. Creative/audience intervention needed.

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